Menu
27/08/2002
UK house price rise slows to more 'realistic pace'
The rapid rise in UK house prices has slowed to a more realistic pace according to the latest report from market analysts Hometrack.
The analysts found that the price of the average house in the UK rose by 0.7% in August, which Hometrack attributed to a "reality check" in the market. Previously in May there was a staggering one-month rise of 2.6%.
Despite the radical reduction in the level of house price rises, housing market analysts are not expecting a sudden crash in the market as was seen in the early 1990s. The level of demand for housing continues to outstrip the rate of supply and although this gap has closed slightly desirable properties are still much sought after.
Hometrack’s Housing Economist John Wriglesworth said: “The housing market has had a reality check and price rises have slowed down to more sustainable rates. While the slowdown has been marked over recent months, this is partly seasonal. Continuing record low mortgage rates, rising incomes, and a shortage of supply point to further price rises, albeit at a more modest rate. The boom continues and I am confident that there will be no 90s-style housing market recession. We are keeping our forecast of 20% house price inflation for this year and 8% for 2003.”
The current low mortgage rate is expected to continue fuelling the demand for housing as purchasers avail of the cheap lending rate.
Analysts say that the seasonal fall in house price growth, traditionally quieter over the summer months, may reflect a return to normality after what have been described as a period of unsustainable house price rises in the past few months.
Housing sector analysts continue to predict a year-end average house price rise of 20%, which puts the rise in prices at eight times that of retail inflation in the same period.
Analysts predict a more modest growth in house prices over the next few months.
(SP)
The analysts found that the price of the average house in the UK rose by 0.7% in August, which Hometrack attributed to a "reality check" in the market. Previously in May there was a staggering one-month rise of 2.6%.
Despite the radical reduction in the level of house price rises, housing market analysts are not expecting a sudden crash in the market as was seen in the early 1990s. The level of demand for housing continues to outstrip the rate of supply and although this gap has closed slightly desirable properties are still much sought after.
Hometrack’s Housing Economist John Wriglesworth said: “The housing market has had a reality check and price rises have slowed down to more sustainable rates. While the slowdown has been marked over recent months, this is partly seasonal. Continuing record low mortgage rates, rising incomes, and a shortage of supply point to further price rises, albeit at a more modest rate. The boom continues and I am confident that there will be no 90s-style housing market recession. We are keeping our forecast of 20% house price inflation for this year and 8% for 2003.”
The current low mortgage rate is expected to continue fuelling the demand for housing as purchasers avail of the cheap lending rate.
Analysts say that the seasonal fall in house price growth, traditionally quieter over the summer months, may reflect a return to normality after what have been described as a period of unsustainable house price rises in the past few months.
Housing sector analysts continue to predict a year-end average house price rise of 20%, which puts the rise in prices at eight times that of retail inflation in the same period.
Analysts predict a more modest growth in house prices over the next few months.
(SP)
Related Northern Ireland News Stories
Click here for the latest headlines.
14 November 2024
Belfast Christmas Market Announces Dublin Express As Official Travel Partner
Belfast Christmas Market is set to celebrate its 20th anniversary in style, with the announcement of Dublin Express as its official travel partner. Opening its gates on November 16th at 12 noon, the market is expected to attract over a million visitors.
Belfast Christmas Market Announces Dublin Express As Official Travel Partner
Belfast Christmas Market is set to celebrate its 20th anniversary in style, with the announcement of Dublin Express as its official travel partner. Opening its gates on November 16th at 12 noon, the market is expected to attract over a million visitors.
14 November 2024
Other News In Brief
Belfast's St George's Market Hosts Festive Christmas Twilight Market Get ready for some festive cheer! St George's Market in Belfast is hosting its annual Christmas Twilight Market on Tuesday 26th and Wednesday 27th November from 4pm to 11pm. The market will be transformed into a winter wonderland with twinkling lights and a lively atmosphere.
Other News In Brief
Belfast's St George's Market Hosts Festive Christmas Twilight Market Get ready for some festive cheer! St George's Market in Belfast is hosting its annual Christmas Twilight Market on Tuesday 26th and Wednesday 27th November from 4pm to 11pm. The market will be transformed into a winter wonderland with twinkling lights and a lively atmosphere.
05 December 2006
NI house prices rise dramatically
House prices in Northern Ireland are now rising at more than 32% a year, according to a survey of local residential property sales.
NI house prices rise dramatically
House prices in Northern Ireland are now rising at more than 32% a year, according to a survey of local residential property sales.
06 December 2004
NI housing market ‘holding up’
Northern Ireland’s housing market is holding up and unlike other parts of the UK has yet to experience any reversal, according to the region’s most authoritative survey of house prices. The latest University of Ulster Quarterly House Price Index reveals that the annual rate of growth in house prices in the third quarter of this year was 9.85%.
NI housing market ‘holding up’
Northern Ireland’s housing market is holding up and unlike other parts of the UK has yet to experience any reversal, according to the region’s most authoritative survey of house prices. The latest University of Ulster Quarterly House Price Index reveals that the annual rate of growth in house prices in the third quarter of this year was 9.85%.
26 May 2010
Modest Rise In Average NI House Prices
The average house price in Northern Ireland rose modestly in the first quarter of this year - but any recovery in the market remains tentative - according to a new survey of house prices.
Modest Rise In Average NI House Prices
The average house price in Northern Ireland rose modestly in the first quarter of this year - but any recovery in the market remains tentative - according to a new survey of house prices.
-
Northern Ireland WeatherToday:A showery start with outbreaks most frequent north of Lough Neagh and through the morning, before dwindling during the afternoon as the northwest breezes ease and brighter spells of weak sunshine prosper. Maximum temperature 8 °C.Tonight:A dry night, save for a few light showers around the coasts, with prolonged clear spells and light winds bringing a frosty dawn for many in central and southern parts. Minimum temperature -3 °C.
